Reviewing B2Gold (NYSE:BTG) & Gatos Silver (NYSE:GATO)

Gatos Silver (NYSE:GATO) and B2Gold (NYSE:BTG) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitability, risk, analyst recommendations, dividends and institutional ownership.

Volatility & Risk

Gatos Silver has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500. Comparatively, B2Gold has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Gatos Silver and B2Gold, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gatos Silver	0	3	0	1	2.50
B2Gold	1	6	3	0	2.20

Gatos Silver currently has a consensus price target of $13.88, indicating a potential downside of 3.65%. B2Gold has a consensus price target of $4.21, indicating a potential upside of 23.53%. Given B2Gold’s higher possible upside, analysts plainly believe B2Gold is more favorable than Gatos Silver.

Profitability

This table compares Gatos Silver and B2Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gatos Silver	N/A	10.37%	9.94%
B2Gold	-33.12%	5.65%	4.06%

Institutional & Insider Ownership

44.8% of Gatos Silver shares are owned by institutional investors. Comparatively, 61.4% of B2Gold shares are owned by institutional investors. 3.8% of Gatos Silver shares are owned by insiders. Comparatively, 1.2% of B2Gold shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Gatos Silver and B2Gold”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gatos Silver	N/A	N/A	$12.86 million	$0.49	29.39
B2Gold	$1.90 billion	2.37	$10.10 million	($0.48)	-7.10

Gatos Silver has higher earnings, but lower revenue than B2Gold. B2Gold is trading at a lower price-to-earnings ratio than Gatos Silver, indicating that it is currently the more affordable of the two stocks.

Summary

Gatos Silver beats B2Gold on 10 of the 14 factors compared between the two stocks.

About Gatos Silver

Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.

About B2Gold

B2Gold Corp. operates as a gold producer company. It operates the Fekola Mine in Mali, the Masbate Mine in the Philippines, and the Otjikoto Mine in Namibia. The company also has an 100% interest in the Gramalote gold project in Colombia; 24% interest in the Calibre Mining Corp.; and approximately 19% interest in BeMetals Corp. In addition, it has a portfolio of other evaluation and exploration assets in Mali and Finland. The company was incorporated in 2006 and is headquartered in Vancouver, Canada.